What are some of the reasons to do a life settlement?

    Personal Reasons:
  • Divorce
  • Fund retirement
  • Debt reduction
  • Eliminate insurance premiums
  • Buy long term care insurance
  • Charitable contributions
  • Use proceeds for other investments
  • Medical Expenses
  • Bankruptcy - liquidation of assets
  • Over insured
  • Bridge periods of lost income
  • Pay for new home or dream vacation
  • Purchase long term care services
  • Higher quality of life
    Estate Planning:
  • Insured outlives heirs
  • Change in estate size means current policy not appropriate
  • Proceeds from life settlement used to buy new paid up policy
  • Changes in estate tax laws no longer necessitate policy
  • Pay gift taxes on current transfer of estate
  • Create financial planning flexibility from dormant asset
  • Current policy is underperforming
    Business & Professional:
  • Business sale
  • Buy/sell agreement dissolved
  • Policy performance is below expectation
  • Executive leaving
  • A "key man" policy is no longer needed or required for loan
  • Deferred compensation payout requires policy liquidation